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By admin, July 13, 2009 9:48 pm

There is Land Transfer Tax for Ontario and if you live in the city of Toronto there is an additional tax there as well. There is a great LTT calculator here http://www.torontorealestateboard.com/LTT_splash/ltt_calculator.htm.

In Ontario:

The tax is calculated as follows:

* 0.5% of the value of consideration for the transfer up to and including $55,000,

* 1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and

* 1.5% of the value of the consideration which exceeds $250,000, and

* 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.

First-time homebuyers may be entitled to a refund of Ontario’s land transfer tax, up to a maximum of $2,000. This refund is usually claimed at the time of registration.

The Toronto Land Tranfer Tax is calculated as follows:

Price of the Home

Up to and including $55,000.00      0.5%  plus

$55,000.01 to $400,000.00             1.0%  plus

Over $400,000.00                                  2.0%

FOR EXAMPLE: A home with a consideration value of $500,000.01 (excluding GST):

0 to $55,000.00                                   55,000.00 x 0.005 = $275.00

$55,000.01 to $400,000.00      $344,999.99 x 0.01= $3,450.00

$400,000.01 to $500,000.00     $99,999.99 x 0.02= $2,000.00

Total MLTT= $5,725.00

If you are a first-time purchaser of a newly constructed or re-sale residential property. The rebate for first-time home purchasers is up to a maximum of $3,725.00.

Your lawyer applies for the credits for you when registering your home.

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By admin, July 10, 2009 3:58 pm

Your credit score is used by most companies to see if you are a good credit risk or not. A credit score of over 680 is considered excellent.

What Can You Do to Improve Your Score?

1. Order a copy of your credit report from www.equifax.com or www.transunion.com to review it and make sure there are no errors.
2. Pay your bills on time.
3. If your credit history is questionable, open a few new accounts and use them responsibly.
4. Don’t open accounts and not use them. Having 6 or 7 of the same type of credit does not work in your favour.
5. Keep your balances low relative to your amount of credit available.
6. Pay off credit card debts!

What Does This Mean to Home Buyer’s?

The better your credit score the higher you buying power (income dependent as well). You will also qualify for the best mortgage products at the best rates.

To see what your credit score is and how much of a home you can afford, make sure to talk to your Real Estate Agent and Mortgage Broker before shopping for your Toronto Home.

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By admin, July 7, 2009 9:02 pm

Buying Your Home:
The Process

Purchase “Agreement of Purchase and Sale” forms

For example: Name, Property address, Legal description, Deposit,
Your choice of Clauses, Chattels, Exclusions, etc.

1. CASH OFFER
   PURCHASER AGREES TO pay the balance of the purchase price in cash or by certified cheque
   to the Vendor on closing, subject to the usual adjustments.

2. CONDITIONAL UPON ARRANGING SATISFACTORY FINANCING
   THIS OFFER IS CONDITIONAL upon the Purchaser arranging satisfactory financing on or before
   ______, otherwise this Offer becomes null and void and the deposit money shall be returned
   to the Purchaser in full without interest. The Purchaser reserves the right to waive this
   condition at his sole option within the specified time period. The said proceeds for
   financing shall be paid to the Vendor on closing as part of the purchase price.

3. CONDITIONAL UPON QUALIFIED INSPECTION
   THIS OFFER IS CONDITIONAL for a period of _____ days from the date of acceptance by the
   Vendor upon the Purchaser having the subject property inspected by a qualified home
   inspector and finding said inspection satisfactory to him, failing which, this Offer shall
   become null and void and the Purchaser’s deposit shall be returned in full without
   interest. The Purchaser reserves the right to waive this condition at his sole option
   within the specified time period.

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By admin, May 27, 2009 9:54 pm

You are starting your search for Toronto Real Estate and you aren’t really sure which neighbourhood to choose.  There are so many great areas in Toronto, how do you decide.  Here are some factors to keep in mind:

• What activities do you regularly engage in.  Do you go to the movies?  Do you attend church?  How far are you willing to travel for these activities. 

• Look into the schools and child care options available in the area.  How do the schools score?  Are you interested in private, public, French or Catholic education?  Do you need before and after care?  Even if you don’t have children now you may in the future and a good school will be important to you then.

• Is the area safe?

• How close do you need to be to work?  Some people don’t mind a long commute.  Some prefer the train over driving.  What is important to you and does the area have transportation available or easy access to highways?  Are you prepared to drive an hour to work and be able to afford more of a house?

• Walk or drive around the area to see if you get a homey feeling before you start looking at homes.  Being focused on a particular neighbourhood will help your Real Estate Agent pinpoint the right homes for you.

There are many websites that offer neighbourhood information.  One of my favourties is ZooCasa

Also I have a pageon this blog that links to the Toronto Life website and their information about neighbourhoods.

Enjoy and if you have any questions about Toronto Homes for Sale and various neighbourhoods, give me a call.

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By admin, May 18, 2009 2:53 pm

Well, it may not be hot outside this Victoria Day Weekend in Toronto but the Real Estate Market is really taking off.  April sales were down 3% from the previous year but this is a big improvement over previous months this year.

I have been quite busy with first time home buyers this month.  I attribute this to great home inventory on the market and historically low interest rates.  I always love to work with them because of the unique process I take them through.  This is a great journey they are embarking upon and I want to meet them in person before we go to look at any homes.  First, it is important to make sure they have been pre-approved to buy a home.  Then, I like to lead them through the home buying process.  Only then do we look at their unique needs and start looking at homes for sale in Toronto after setting up their personlized listing notification system.

To sign up for my unique buyer system, give me a call at 416-518-8188 or e-mail me at info@torontosuburbs.ca.

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By Lisa Collins, March 20, 2009 7:05 pm

Anyone who owns a home knows that there are many additional costs associated with owning a home. Many first-time homeowners base their decision to buy a home on their ability to make the monthly mortgage payments. In fact, there are many other costs that go into owning a home than just the mortgage payment.

First-time homeowners are often startled by the hidden costs of owning a home. The traditional housing expenses (principal payments, interest, taxes and insurance) are just the beginning. Maintenance, repairs, supplemental insurance, home improvements and decorating can cost you thousands of dollars a year—more than you expect.

Additionally, a home purchase triggers a series of additional spending on appliances, furnishings and remodelling activities that exceed typical spending levels of non-moving owners or renters and can persist for two years after moving.

Let’s take a look at the most overlooked items that tend to be a burden to all homeowners:

Move-in Costs

1. Home improvement costs
Your new home may require some repairs or remodelling. One of the great things about being a homeowner is the opportunity to put your personal stamp on a house. It’s easy to go overboard with home improvements, though. Relatively few projects add much lasting value to your home, let alone guarantee that you will recoup your costs.

Homeowners are more inclined to purchase luxury items that renters would not, such as granite counter tops, pricey fixtures, alarm systems and other gadgetry. The cost of these luxury amenities can easily add thousands of dollars to the cost of owning a home.

2. Furnishings costs
You will also want to budget money for additional furnishings. Since your new home is likely to be larger than your apartment, you will probably need more furniture. You might also want window treatments, lighting fixtures, carpet or area rugs and appliances, all of which can add up to tens of thousands of dollars.

Ongoing Costs

1. Monthly mortgage payment
Probably this is the easiest to understand. If you have selected a fixed rate mortgage, your lender will tell you exactly how much your monthly payment is going to be.

2. Property taxes
Property taxes can be demanding because even if you’ve paid off the mortgage, you still have to pay a monthly fee to the town and/or the municipality in which you reside. It can easily total $500 to $1,000 or more a month, particularly in large cities where property values have soared in recent years.

3. Utility bills
The monthly utility bills such as electricity, gas and others could amount to $400 or more, some current home renters may not be aware of this as most likely it is included with their monthly rent. If you are moving to a condominium, you should also add monthly condominium fees.

4. Maintenance costs
How much your home will cost you in maintenance and repairs depends on several factors: the age of the home, how well it’s been treated by previous owners, the harshness of your climate and how much money you want to get out of your home when you sell it.

You should budget between 1% to 2% of your home’s value for annual maintenance. If you bought a $200,000 home, for example, you should set aside at least $2,000 a year, or around $200 a month. Some years you’ll spend less, but others you could spend more. A new roof for your home, for example, can cost $4,000 or more.

Naturally, some homes cost more to maintain than others. Older homes usually need more maintenance than newer homes, even if it has been recently renovated. Also, don’t assume that because a home is new, it won’t need any maintenance for a while. All homes need to be attended to on a regular basis to keep them from falling into a state of disrepair.

The Bottom Line
Being a homeowner brings with it a great sense of pride and gives you enormous stability and security knowing that you will always have a roof over your head, however, it can cost a lot more than you think. So to avoid any unpleasant surprises, make sure you are aware of these extra costs.

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By Lisa Collins, March 4, 2009 5:46 pm

At it’s peak, first time home buyers accounted for almost 70% of all buyers purchasing homes.  Now it is hovering around 40%.  I have noticed recently, that this number is once again on the rise.  In the last week, I have met 3 first time home buyers who are starting their search for their first home.

Although the market has not finished it’s down swing, interest rates are lower than ever and the government introduced new measures in it’s budget to make home ownership more attainable for first time home buyers.  Now is a great time to buy for those who are looking to purchase their first home.

To start looking today, give me call.  When we meet I will educate you on purchasing a home and we will complete a profile individual to you and your needs.

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By Lisa Collins, January 27, 2009 6:09 pm

Great news first-time home buyers can now withdraw from an RRSP to $25,000 from the previous $20,000. 

First-time home buyers will also benefit from a new non-refundable tax credit of $5,000 for qualified homes that close after January 27, 2009.